Page 133 - ADVANCED TAXATION - Day 1 Slides

Solution

R14 230 × 14/114 × 40% = R699,02 output tax payable to SARS BB

Bank’s output tax liability is apportioned according to 40% taxable

supplies made. With the initial purchase of the computer as well as with

the monthly insurance premiums paid, BB Bank was only entitled to

40% of the input tax.